Core Viewpoint - The establishment of Yantai Wanhua Electric Materials Co., Ltd. marks a significant development in the new materials sector, with a focus on synthetic materials and technology promotion, backed by major stakeholders including Wanhua Chemical and Oriental Cable [1] Group 1: Company Developments - Yantai Wanhua Electric Materials Co., Ltd. has a registered capital of 110 million RMB and aims to engage in new materials technology promotion and synthetic materials manufacturing and sales [1] - Oriental Cable, a leading supplier in the submarine and land cable market, is projected to achieve a market share of 42.34% in submarine cables by 2024, with a revenue forecast of 9.093 billion RMB and a net profit of 1.008 billion RMB for the same year [1] - The company has secured orders worth approximately 19.6 billion RMB, with 11 billion RMB attributed to submarine cable business [1] Group 2: Strategic Collaborations - In April 2024, Wanhua Chemical partnered with Oriental Cable and TBEA, a leader in the power transmission and transformation industry, to innovate high-voltage cable insulation materials to meet the growing demand from the electric vehicle and offshore wind power sectors [2] - Wanhua Chemical has leveraged its integrated supply chain to produce high-voltage XLPE products, which exhibit superior cleanliness, thermal stability, and cross-linking capabilities [2] - A joint investment of around 1 billion RMB was made by Wanhua Chemical and Wanma Group to establish an integrated project for environmentally friendly cable polymer materials, targeting an annual production capacity of 600,000 tons [2] Group 3: Market Insights - The wire and cable industry is a significant sector in China's economy, with a market size of approximately 1.30176 trillion RMB in 2023, reflecting a year-on-year growth of 7%, and is expected to reach 1.35123 trillion RMB in 2024 [2] - The demand for cable materials is expected to rise significantly, driven by the increasing use of electric vehicles and offshore cables, prompting companies like Daon Co. to acquire firms like Anhui Bost New Materials to deepen their involvement in the cable materials sector [3] Group 4: Material Composition and Trends - The structure of power cables includes various components such as conductors, insulation layers, fillers, armor layers, and outer protective layers, with materials like XLPE, PVC, and rubber being critical for insulation [4] - XLPE has become the preferred choice for insulation in cables rated at 3kV and above due to its performance advantages, particularly in high-voltage applications [4] - Despite the growth in domestic production, high-end materials for high-voltage cables still rely heavily on imports, with over 80% of specialized LDPE cable materials for high-voltage applications sourced from abroad [5]